Sánchez gives in to pressure from Díaz to raise the SMI and companies warn: “It will damage employment”




«We are in a time of high uncertainty, our priority is to promote economic recovery and job creation, “said the economic vice president, Nadia Calviño, but this fragility of the economy and the devastating effects of the pandemic on the business fabric and employment, already allows the Government
open the door to a rise in the minimum wage
next September, which he has been denying for months despite the insistence of the Minister of Labor and Vice President, Yolanda Díaz. The successor of Pablo Iglesias in the Executive has achieved what few believed: convince the president, Pedro Sánchez, that recovery must be made available to all. He already managed to convince him before that the members of Podemos were not touched in the change of government, although one of his ministers, Alberto Garzón, put the livestock sector on a war footing days before by recommending moderation in the consumption of meat.

Calviño’s announcement has put businessmen on the warpath, who see how the business fabric is barely returning despite the Covid and the restrictions. «It is hasty and will cause damage to employment. There are still many freelancers and small companies that have not seen the horizon of recovery and raising the minimum wage for some activities would be counterproductive, “he assures ABC Lorenzo Love, President of ATA and Vice President of CEOE.

At the beginning of this month, Yolanda Díaz claimed the President of the Government, Pedro Sánchez, and the rest of the members of the Executive who had in this matter “The same courage” as with the pardons to the independence prisoners. «The same courage that we had in the Government with the deployment of pardons is now necessary for people who are having a hard time. In 2023 we will not be tried for pardons. We are going to be judged by the people who are suffering And that’s where we have to be. The minister once again challenged with her demand, which until now has not been shared by any member of the Executive.

Cumulative increase of 30% in two years

The president of Madrid businessmen and vice president of CEOE, Miguel Garrido, recently declared to ABC that the Government should “focus on trying to maintain the jobs that currently exist and do not add more fire to the business hecatomb that the country is experiencing». He remarked that “the strong increases experienced in recent years have had a very detrimental effect on the employment of the youngest and workers with less training.” The truth is that the evolution of this remuneration accumulates a 30% increase in just two years, after growing by 22.3% in 2019 and 5.5% in 2020, from 735 euros in December 2018 to 950 euros current. Now, Diaz’s initial idea is raise it to 1,000 euros per month. This was the objective of the Government prior to the pandemic but the intense negotiation and frontal rejection of the businessmen caused it to be cut down to current 950 euros.

Any rise in this indicator has direct impact on the price of the lowest salaries, and in the minimum contribution bases, since they are referenced. They are the ones that provide the highest collection to Social Security and fully affect the self-employed, since most contribute for this lower bracket. A new twist on this group would have dramatic effects, assure the sources consulted by ABC.

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